Common use of Cash Calls and Future Capitalisation Clause in Contracts

Cash Calls and Future Capitalisation. 3.3.1 Subject to the Initial Subscription as set out in Clause 3.2 hereinabove, the JVC, in order to meet its financial requirements may, from time to time, increase its authorized and/or paid up capital. Provided however, the JVC shall, prior to making any fresh issue of Equity Shares ensure that the Trigger Debt Equity Ratio is maintained. If the Trigger Debt Equity Ratio is not so maintained, the JVC shall not issue any fresh Equity Shares till such time as the Trigger Debt Equity Ratio is in place. Towards this end, the Private Participants (without diluting AAI (along with AAI Nominees) equity shareholding) hereby covenant and agree to infuse funds in such form and quantity as may be necessary to ensure that the Trigger Debt Equity Ratio is maintained immediately prior to the time of any fresh issue of Equity Shares. Notwithstanding anything contained to the contrary in this Clause 3.3.1, where any financing documents prescribe that equity capital be infused in the JVC prior to any draw-down of debt, the JVC may, to the extent necessary, make such cash calls or issue such fresh equity to its shareholders, so as to ensure compliance with the requirements of such financing documents.